BILL NUMBER: SB 401	CHAPTERED  09/21/99

	CHAPTER   457
	FILED WITH SECRETARY OF STATE   SEPTEMBER 21, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 21, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 9, 1999
	AMENDED IN ASSEMBLY   AUGUST 23, 1999
	AMENDED IN SENATE   JUNE 2, 1999

INTRODUCED BY   Senator Karnette

                        FEBRUARY 12, 1999

   An act to amend Sections 18717, 19816.20, 19818.8, 19858.3,
19858.4, 19858.5, 19863.1, 20400, 20405.1, 21547, and 22754 of, to
add Sections 21547.5 and 22955.55 to, and to repeal Sections
19816.23, 19858.6, 20068.2, 20405.3, 22811.6, and 22957.5 of, the
Government Code, and to amend Sections 10295 and 10344.1 of the
Public Contract Code, relating to state employees, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 401, Karnette.  State employees.
   (1) Existing law requires the State Personnel Board, except with
respect to state employees in State Bargaining Unit 16 or 19, to
develop objective criteria for determining the application to state
civil service positions of the state safety membership category of
the Public Employees' Retirement System (PERS), to determine, upon
the request of the Department of Personnel Administration or an
employee organization, which classes of positions meet the criteria,
and to report thereon to the Legislature with the related signed
memorandum of understanding.  Existing law requires the department,
with respect to state employees in State Bargaining Unit 16 or 19, to
determine which classes or position meet the elements of the
criteria for state safety category of membership in the PERS.
   This bill would require the department, with respect to state
bargaining units that have agreed to these provisions in a memorandum
of understanding between the state employer and the recognized
employee organization, to determine which classes or positions meet
the elements of the criteria for the state safety category of members
in PERS.
   (2) Existing law authorizes the Department of Personnel
Administration to provide for annual leave benefits with respect to
each officer and employee excluded from the definition of state
employee for the purposes of the Ralph C. Dills Act, which regulates
state employer-employee relations.  The California Code of
Regulations authorizes employees who are excluded from the definition
of state employee for the purposes of that act to make an
irrevocable election, in lieu of earning sick leave and vacation
benefits, to participate in the annual leave program and requires
newly appointed employees to this class as of November 1, 1995, to be
placed in the annual leave program.
   This bill would make a conforming change to provisions of existing
law regarding annual leave to provide that the provisions are
applicable to employees who are excluded from the definition of state
employee for the purposes of the act.
   (3) Existing law provides that participation in the annual leave
program by employees in any state bargaining unit for which a
memorandum of understanding has been agreed to by the state employer
and a recognized employee organization and has been approved by the
Legislature is subject to conditions set forth in a specified
provision of existing law.
   This bill would repeal that provision of existing law and instead
authorize these state employees to participate in the annual leave
program subject to the appropriate memorandum of understanding.
   (4) Under existing law, the Department of Personnel Administration
succeeds to, and is vested with, the duties, purposes,
responsibilities, and jurisdiction exercised by the State Personnel
Board with respect to the administration of the Personnel
Classification Plan.  Existing law prohibits a person from being
assigned to perform the duties of any class other than that to which
his or her position is allocated, except for the temporary assignment
or loan of employees within an agency or between agencies for not to
exceed 2 years or between jurisdictions for not to exceed 4 years
for specified purposes.
   This bill would make a technical change by correcting a
cross-reference to conform to existing law.
   (5) Existing law provides that a state officer or employee who is
entitled to temporary disability indemnity under existing provisions
of law governing workers' compensation as a result of an industrial
accident occurring during a period of employment for which he or she
is not earning sick leave credit shall have sick leave credit of one
day for each completed month of service during the time he or she is
not earning sick leave credit.
   This bill would provide that these state officers or employees who
are entitled to temporary disability indemnity or vocational
rehabilitation maintenance allowance shall earn sick leave and
vacation leave or annual leave as though the employee was working.
The bill would authorize a state officer or employee who is receiving
temporary disability of vocational rehabilitation maintenance
allowance to supplement the payments with any form of leave credits
provided the supplementation does not exceed the employee's full pay
less mandatory withholdings.
   (6) Existing law, the Public Employees' Retirement Law,
establishes the Public Employees' Retirement System, and sets forth
the provisions for its administration and the delivery of benefits to
its members.  The state's employer contributions to the Public
Employees' Retirement Fund are continuously appropriated from the
General Fund and other funds in the State Treasury.  Existing law
includes employees in State Bargaining Unit 16 or 19 whose
classifications or positions are found to meet specified state safety
criteria within the classifications of state safety officers, if the
Department of Personnel Administration has agreed to their
inclusion.
   This bill would include state employees in state bargaining units
that have agreed in a memorandum of understanding between the state
employer and the recognized employee organization that the
classifications or positions of these state employees are found to
meet specified state safety criteria within the classifications of
state safety officers, if the Department of Personnel Administration
has agreed to their inclusion.  To the extent that the bill would
enlarge the class of persons eligible for state safety membership, it
would make an appropriation by increasing the state's contribution
to the Public Employees' Retirement Fund.
   (7) The Public Employees' Retirement Law authorizes the surviving
spouse or eligible children of certain state members who die prior to
retirement with 20 years or more of state service to receive a
specified monthly allowance in lieu of the basic death benefit, as
defined.
   This bill would revise the amount of that monthly allowance, as
specified, and would provide that survivors who are receiving the
current allowance shall receive the revised allowance on and after
January 1, 2000.
   (8) Existing law, the Public Employees' Medical and Hospital Care
Act, provides health benefits plan coverage to public employees and
annuitants meeting the eligibility requirements prescribed by the
Board of Administration of the Public Employees' Retirement System.
Existing law revises the definition of "eligible employee" for the
purposes of the act as it applies to state employees in State
Bargaining Units 8 and 16, and revises the definition of "family
member" for the purposes of the act as it applies to state employees
in State Bargaining Unit 5.
   This bill would repeal the revised definitions of "eligible
employees" and "family member."
   (9) Under the Public Employees' Medical and Hospital Care Act and
the State Employees' Dental Care Act, an annuitant, as defined, may
enroll or continue his or her enrollment in an approved health
benefits plan and dental care plan without discrimination as to
premium rates or benefits coverage.  However, a family member
receiving the survivor's monthly allowance described above may elect
to be covered or continue to be covered by those plans only upon
payment of the total premium cost plus 2%.
   This bill would repeal those provisions regarding the payment of
premiums by those family members and instead would include those
family members within the definition of an "annuitant" for purposes
of plan coverage under those acts.
   (10) Existing law governing preretirement death benefits under the
Public Employees' Retirement System provides that notwithstanding
the requirement that a state member attain the minimum age for
voluntary service retirement in his or her last employment preceding
death, upon the death of a state member on or after January 1, 1993,
who is credited with 20 years or more of state service, the surviving
spouse, or eligible children if there is no eligible spouse, may
receive a monthly allowance in lieu of the basic death benefit, as
specified.
   This bill would revise the applicable conditions and amounts
payable under this provision.
   (11) Existing law, with specified exceptions, provides that all
contracts entered into by any state agency for the hiring or purchase
of a variety of goods and services, including equipment, supplies,
textbooks, and repair or maintenance, are void unless approved by the
Department of General Services.  Contracts entered into by the
Department of Personnel Administration for employee benefits,
occupational health and safety, training services, or a combination
thereof, for state employees in State Bargaining Unit 8 or 16 are
exempt from this approval requirement.
   This bill would apply the exemption to contracts entered into by
the Department of Personnel Administration for employee benefits,
occupational health and safety, training services, or a combination
thereof, for state employees in state bargaining units that have
agreed to this provision in a memorandum of understanding.
   (12) Existing law provides that if any provision of a memorandum
of understanding reached between the state employer and a recognized
employee organization representing state civil service employees
requires the expenditure of funds, those provisions of the memorandum
of understanding shall not become effective unless approved by the
Legislature in the annual Budget Act.
   This bill would approve provisions of specified memoranda of
understanding entered into between the state employer and specified
employee organizations, and would provide that the provisions of any
memorandum of understanding that require the expenditure of funds
shall become effective even if the provisions of the memorandum of
understanding are approved by the Legislature in legislation other
than the annual Budget Act.
   This bill would provide that any provision in a memorandum of
understanding approved by any section of this bill, and which
requires the expenditure of funds, shall not take effect unless funds
for these provisions are specifically appropriated by the
Legislature, and would provide that if funds for these provisions are
not specifically appropriated by the Legislature, all or any part of
the memorandum of understanding may be declared null and void by any
affected employee organization.
   (13) The bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 18717 of the Government Code is amended to
read:
   18717.  (a) The board shall develop objective criteria for
determining the application of the state safety category of
membership in the Public Employees' Retirement System to positions in
the state civil service.  Upon the request of the Department of
Personnel Administration or an employee organization, the board shall
then determine which classes of positions meet all or part of the
elements of the criteria and shall list the positions in order based
upon the degree in which their duties meet the criteria.  An employee
organization that requests a determination with respect to a class
of position previously determined not to meet the criteria shall
submit a written argument supporting the assertion that the class of
position meets the criteria.  The board, if it finds the written
argument to be unpersuasive, may refuse to commence determination
proceedings unless and until either the Department of Personnel
Administration requests a determination with respect to that class of
position or the employee organization submits to the board a
supporting argument which the board finds persuasive.  The board
shall indicate to the department whether the classes qualify for
state safety membership.  The Public Employees' Retirement System and
employing agencies shall assist and cooperate with the board in
preparation of the report.
   (b) The board shall transmit the report directly to the
department, which shall make a copy available to the exclusive
representative of any employee organization upon its written request.

   (c) The department may use the results of the study in subsequent
negotiations with the exclusive employee representatives; however,
the report shall in no way obligate the department to take any action
or make any recommendations as it relates to state safety
membership.
   (d) The department shall not recommend safety membership for any
class of employees who have not been determined by the board to meet
the established criteria.
   (e) For classes of employees recommended for state safety
membership by a memorandum of understanding reached pursuant to
Section 3517.5, a copy of the report authorized under this section
shall be submitted to the Legislature with the signed memorandum of
understanding.
   (f) This section does not apply to state employees who are subject
to Sections 19816.20 and 20405.1.
  SEC. 2.  Section 19816.20 of the Government Code is amended to
read:
   19816.20.  Notwithstanding Section 18717, this section shall apply
to state employees in state bargaining units that have agreed to
these provisions in a memorandum of understanding between the state
employer and the recognized employee organization, as defined in
Section 3513.
   (a) The department shall determine which classes or positions meet
the elements of the criteria for the state safety category of
membership in the Public Employees' Retirement System.  An employee
organization or employing agency requesting a determination from the
department shall provide the department with information and written
argument supporting the request.
   (b) The department may use the determination findings in
subsequent negotiations with the exclusive representatives.
   (c) The department shall not approve safety membership for any
class or position that has not been determined to meet all of the
following criteria:
   (1) In addition to the defined scope of duties assigned to the
class or position, the member's ongoing responsibility includes:
   (A) The protection and safeguarding of the public and of property.

   (B) The control or supervision of, or a regular, substantial
contact with one of the following:
   (i) Inmates or youthful offenders in adult or youth correctional
facilities.
   (ii) Patients in state mental facilities that house Penal Code
offenders.
   (iii) Clients charged with a felony who are in a locked and
controlled treatment facility of a developmental center.
   (2) The conditions of employment require that the member be
capable of responding to emergency situations and provide a level of
service to the public such that the safety of the public and of
property is not jeopardized.
   (d) For classes or positions that are found to meet this criteria,
the department may agree to provide safety membership by a
memorandum of understanding reached pursuant to Section 3517.5 if the
affected employees are subject to collective bargaining.  The
department shall notify the retirement system of its determination,
as prescribed in Section 20405.1.
   (e) The department shall provide the Legislature an annual report
that lists the classes or positions which were found to be eligible
for safety membership under this section.
  SEC. 3.  Section 19816.23 of the Government Code is repealed.
  SEC. 4.  Section 19818.8 of the Government Code is amended to read:

   19818.8.  (a) A person shall not be assigned to perform the duties
of any class other than that to which his or her position is
allocated, except as permitted by Section 19050.8.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of the memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 5.  Section 19858.3 of the Government Code is amended to read:

   19858.3.  This article shall apply to all of the following:
   (a) Employees who are excluded from the definition of "state
employee" in subdivision (c) of Section 3513.
   (b) Nonelected officers of the executive branch of government
exempt from civil service designated by the department as eligible to
receive managerial benefits.
   (c) A State Traffic Sergeant in the California Highway Patrol.
   (d) Commencing January 1, 1989, employees in a state bargaining
unit for which a memorandum of understanding has been agreed to by
the state employer and the recognized employee organization to be
subject to this article and has been approved by the Legislature
pursuant to law.
  SEC. 6.  Section 19858.4 of the Government Code is amended to read:

   19858.4.  In lieu of the sick leave and vacation provisions of
Sections 19858.1 and 19859, eligible employees, as defined by
subdivisions (a), (b), and (c) of Section 19858.3, may elect to
participate in an annual leave program.  Each employee who has
elected to participate in the annual leave program and who is
employed full time shall receive credit for annual leave with pay in
accordance with the following schedule:


          1 month to 3 years .....................   11 hours per
month
         37 months to 10 years ...................   15 hours per
month
        121 months to 15 years ...................   17 hours per
month
        181 months to 20 years ...................   18 hours per
month
        241 months to 25 years ...................   19 hours per
month
        301 months and over ......................   20 hours per
month

   Part-time and hourly employees shall accrue proportional annual
leave credits based on the schedule in this section.  The time when
annual leave shall be taken shall be determined by the appointing
power of the officer or employee.  Employees shall have use of any
accrued sick leave they have accrued at the time they elect the
annual leave program under the same conditions as other employees not
participating in the program.
   The department shall provide by rule for the regulation and
accumulation of annual leave, the effect of an absence from the
payroll of 10 work days or less in any calendar month upon credit for
annual leave, methods by which employees leaving the employment of
one state agency and entering the employment of another state agency
may be compensated for, transfer, or otherwise receive proper credit
for, their accumulated annual leave, and other provisions necessary
for the administration of this section.
  SEC. 7.  Section 19858.5 of the Government Code is amended to read:

   19858.5.  In lieu of sick leave and vacation provisions of
Sections 19858.1 and 19859, eligible employees, as defined by
subdivision (d) of Section 19858.3, may participate in an annual
leave program subject to the conditions of the appropriate memorandum
of understanding.  Each employee who participates in the annual
leave program and who is employed full time shall receive credit for
annual leave with pay in accordance with the following schedule:


          1 month to 3 years .....................    11 hours per
month
         37 months to 10 years ...................    14 hours per
month
        121 months to 15 years ...................    16 hours per
month
        181 months to 20 years ...................    17 hours per
month
        241 months and over ......................    18 hours per
month

   Part-time and hourly employees shall accrue proportional annual
leave credits based on the schedule in this section.  The time when
annual leave shall be taken shall be determined by the appointing
power of the officer or employee.  Employees shall have use of any
accrued sick leave they have accrued at the time they elect the
annual leave program under the same conditions as other employees not
participating in the program.
   The department shall provide by rule for the regulation and
accumulation of annual leave, the effect of an absence from the
payroll of 10 work days or less in any calendar month upon credit for
annual leave, methods by which employees leaving the employment of
one state agency and entering the employment of another state agency
may be compensated for, transfer, or otherwise receive proper credit
for, their accumulated annual leave, and other provisions necessary
for the administration of this section.
  SEC. 8.  Section 19858.6 of the Government Code is repealed.
  SEC. 9.  Section 19863.1 of the Government Code is amended to read:

   19863.1.  (a) Notwithstanding any other provision of the law to
the contrary, a state officer or employee who is entitled to
temporary disability indemnity or vocational rehabilitation
maintenance allowance under Division 4 (commencing with Section 3200)
or Division 4.5 (commencing with Section 6100) of the Labor Code as
a result of an industrial accident  or injury shall earn sick leave
and vacation leave or annual leave as though the employee was
working.  The state officer or employee who is receiving temporary
disability or vocational rehabilitation maintenance allowance shall
be permitted to supplement the payments with any form of leave
credits.  Supplementation of leave credits combined with vocational
rehabilitation maintenance allowance shall not exceed the employee's
full pay less mandatory withholdings.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 10.  Section 20068.2 of the Government Code is repealed.
  SEC. 11.  Section 20400 of the Government Code is amended to read:

   20400.  (a) "State safety member" also includes members employed
in the Department of Forestry and Fire Protection, whose principal
duties consist of active fire suppression or supervision, including,
but not limited to, members employed to perform duties now performed
under the following titles:  State Forester; all classes of State
Forest Rangers; all classes of Deputy State Forester; all classes of
fire prevention and law enforcement officers; all classes of
Foresters; Fire Captain; all classes of Fire Crew Foreman; all
classes of Forestry Trainees; all classes of forestry equipment and
civil engineers;  Forestry Superintendent, Conservation Camps; Fire
Apparatus Engineer; Fireman, C.D.F.; Firefighter (Seasonal);
Equipment Maintenance Foreman;  Heavy Fire Equipment Operator.
However, "state safety  members" shall not include members employed
in classes other than those set forth in this section whose principal
duties are clerical or such as otherwise clearly do not fall within
the scope of active fire suppression.
   (b) Notwithstanding subdivision (a), "state safety member" shall
not include civil engineers hired by the Department of Forestry and
Fire Protection on or after January 1, 2000.
  SEC. 12.  Section 20405.1 of the Government Code is amended to
read:
   20405.1.  Notwithstanding Section 20405, this section shall apply
to state employees in state bargaining units that have agreed to
these provisions in a memorandum of understanding between the state
employer and the recognized employee organization, as defined in
Section 3513.
   (a) On and after the effective date of this section, state safety
members shall also include officers and employees whose
classifications or positions are found to meet the state safety
criteria prescribed in Section 19816.20, provided the Department of
Personnel Administration agrees to their inclusion.  The effective
date of safety membership shall be the date on which the department
and the employees' exclusive representative reach agreement by
memorandum of understanding pursuant to Section 3517.5.
   (b) The department shall notify the board as new classes or
positions become eligible for state safety membership, as specified
in subdivision (a), and specify how service prior to the effective
date shall be credited.
   (c) Notwithstanding Section 7550.5, the department shall prepare
and submit to the Legislature an annual report that contains the
classes or positions that are eligible for state safety membership
under this section.
   (d) Any person designated as a state safety member pursuant to
this section may elect, within 90 days of notification by the board,
to remain subject to the miscellaneous or industrial service
retirement benefit and contribution rate by filing an irrevocable
election with the board.  A member who so elects shall be subject to
the reduced benefit factors specified in Section 21076 or Section
21353 only for service also included in the federal system.
  SEC. 13.  Section 20405.3 of the Government Code is repealed.
  SEC. 14.  Section 21547 of the Government Code is amended to read:

   21547.  (a) Notwithstanding any other provision of this article
requiring attainment of the minimum age for voluntary service
retirement to him or her in his or her last employment preceding
death, upon the death of a state member on or after January 1, 1993,
who is credited with 20 years or more of state service, the surviving
spouse, or eligible children if there is no eligible spouse, may
receive a monthly allowance in lieu of the basic death benefit.  The
board shall notify the eligible survivor, as defined in Section
21546, of this alternate death benefit.  The board shall calculate
the monthly allowance that shall be payable as follows:
   (1) To the member's surviving spouse, an amount equal to the
amount the member would have received if he or she had retired for
service at minimum retirement age on the date of death and had
election Option Settlement 2 and Section 21459.
   (2) If there is no surviving spouse or the spouse dies before all
of the children of the deceased member attain the age of 18 years, to
the surviving children, under the age of 18 years, collectively, an
amount equal to one-half of, and derived from the same source as, the
unmodified allowance the member would have received if he or she had
retired for service at minimum retirement age on the date of death.
No child shall receive any allowance after marrying or attaining the
age of 18 years.  As used in this paragraph, "surviving children"
includes a posthumously born child or children of the member.
   (b) This section shall only apply to members employed in state
bargaining units for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section, members who are
excluded from the definition of state employees in subdivision (c) of
Section 3513, and members employed by the executive branch of
government who are not members of the civil service.
   (c) For purposes of this section, "state service" means service
rendered as a state employee, as defined in Section 19815.  This
section shall not apply to any contracting agency nor to the
employees of any contracting agency.
  SEC. 15.  Section 21547.5 is added to the Government Code, to read:

   21547.5.  For any survivor receiving a monthly allowance pursuant
to Section 21547 prior to January 1, 2000, that allowance shall be
adjusted as of January 1, 2000, to equal the amount that the survivor
would have been entitled to receive if the member's death had
occurred on or after January 1, 2000.  The adjusted allowance shall
be payable only on and after January 1, 2000.
  SEC. 16.  Section 22754 of the Government Code is amended to read:

   22754.  As used in this part the following definitions, unless the
context otherwise requires, shall govern the interpretation of
terms:
   (a) "Board" means the Board of Administration of the Public
Employees' Retirement System.
   (b) "Employee" means:
   (1) Any officer or employee of the State of California or of any
agency, department, authority, or instrumentality of the state
including the University of California, or any officer or employee
who is a local or school member of the Public Employees' Retirement
System employed by a contracting agency that has elected to be or
otherwise has become subject to this part, or who is a member or
retirant of the State Teachers' Retirement System employed by an
employer who has elected to become subject to this part, or who is an
employee or annuitant of a special district or county subject to the
County Employees Retirement Law of 1937 (Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3) that has elected
to become subject to this part, or who is an employee or annuitant of
a special district, as defined in subdivision (i), that has elected
to become subject to this part, except persons employed on an
intermittent, irregular or less than half-time basis, or employees
similarly situated, or employees in respect to whom contributions by
the state for any type of plan or program offering prepaid hospital
and medical care are otherwise authorized by law.
   (2) Any officer or employee who participates in the retirement
system of a contracting agency as defined in paragraph (2) of
subdivision (g) that has elected to become subject to this part,
except persons employed less than half time or who are otherwise
determined to be ineligible.
   (3) Any annuitant of the Public Employees' Retirement System
employed by a contracting agency as defined in subdivision (g) that
has elected to become subject to this part who is a person retired
under Section 21228.
   (c) "Carrier" means a private insurance company holding a valid
outstanding certificate of authority from the Insurance Commissioner
of the state, a medical society or other medical group, a nonprofit
hospital service plan qualifying under Chapter 11A (commencing with
Section 11491) of Part 2 of Division 2 of the Insurance Code, or
nonprofit membership corporation lawfully operating under Section
9200 or Section 9201 of the Corporations Code, or a health care
service plan as defined under subdivision (f) of Section 1345 of the
Health and Safety Code, or a health maintenance organization approved
under Title XIII of the federal Public Health Services Act, that is
lawfully engaged in providing, arranging, paying for, or reimbursing
the cost of personal health services under insurance policies or
contracts, medical and hospital service agreements, membership
contracts, or the like, in consideration of premiums or other
periodic charges payable to it.
   (d) "Health benefits plan" means any program or entity that
provides, arranges, pays for, or reimburses the cost of health
benefits.
   (e) "Annuitant" means:
   (1) Any person who has retired within 120 days of separation from
employment and who receives any retirement allowance under any state
or University of California retirement system to which the state was
a contributing party.
   (2) A family member receiving an allowance as the survivor of an
annuitant who has retired as provided in paragraph (1), or as the
survivor of a deceased employee under Section 21541, 21546, or 21547
or similar provisions of any other state retirement system.
   (3) Any employee who has retired under the retirement system
provided by a contracting agency as defined in paragraph (2) of
subdivision (g) and who receives a retirement allowance from that
retirement system, or a surviving family member who receives the
retirement allowance in place of the deceased.
   (4) Any person who was a state member for 30 years or more and
who, at the time of retirement, was a local member employed by a
contracting agency.
   (f) "Family member" means an employee's or annuitant's spouse and
any unmarried child (including an adopted child, a stepchild, or
recognized natural child who lives with the employee or annuitant in
a regular parent-child relationship).  The board shall, by
regulation, prescribe age limits and other conditions and limitations
pertaining to unmarried children.
   (g) "Contracting agency" means:
   (1) Any contracting agency as defined in Section 20022, any county
or special district subject to the County Employees Retirement Law
of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3), and any special district, school district,
county board of education, personnel commission of a school district
or a county superintendent of schools.
   (2) Any public body or agency of, or within California not covered
by the Public Employees' Retirement System or subject to the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3), that provides a
retirement system for its employees funded wholly or in part by
public funds.
   (h) "Employer" means the state, any contracting agency employing
an employee, and any agency that has elected to become subject to
this part pursuant to Section 22856.
   (i) "Special district" means a nonprofit, self-governed public
agency, within the State of California and comprised solely of public
employees, performing a governmental rather than proprietary
function.
  SEC. 17.  Section 22811.6 of the Government Code is repealed.
  SEC. 18.  Section 22955.55 is added to the Government Code, to
read:
   22955.55.  (a) Notwithstanding the provisions of Sections 22953
and 22954, employees who become state members of the Public Employees'
Retirement System after January 1, 2000, and who are included in the
definition of state employee in subdivision (c) of Section 3513, and
are members of a state bargaining unit that has agreed to this
section, shall not receive any portion of the employer's contribution
payable for annuitants, pursuant to Sections 22953 and 22954, unless
these employees are credited with 10 years of state service as
defined by this section, at the time of retirement.
   (b) Notwithstanding Sections 22953 and 22954, a state employee who
became a state member of the Public Employees' Retirement System
after January 1, 2000, and is either (1) excluded from the definition
of state employee in subdivision (c) of Section 3513; or (2) a
nonelected officer or employee of the executive branch of government
who is not a member of the civil service, shall not receive any
portion of the employer's contribution payable for annuitants,
pursuant to Sections 22953 and 22954, unless the employee is credited
with 10 years of state service as defined by this section, at the
time of retirement.
   (c) The percentage of employer's contribution amount payable for
postretirement dental care benefits for an employee subject to this
section shall be based on the funding provisions of the plan and the
member's completed years of state service at retirement as shown in
the following table:


                                                 Percentage
     Credited Years                             of Employer
       of Service                               Contribution
         10 ................................        50
         11 ................................        55
         12 ................................        60
         13 ................................        65
         14 ................................        70
         15 ................................        75
         16 ................................        80
         17 ................................        85
         18 ................................        90
         19 ................................        95
         20 or more ........................       100

   (d) This section shall only apply to state employees who retire
for service.
   (e) Benefits provided to an employee subject to this section shall
be applicable to all future state service.
   (f) For purposes of this section, "state service" shall mean
service rendered as an employee or an appointed or elected officer of
the state for compensation.  In those cases where the state assumes
or has assumed from a public agency a function and the related
personnel, service rendered by that personnel for compensation as
employees or appointed or elected officers of that local public
agency shall not be credited, at retirement, as state service for the
purposes of this section, unless the former employer has paid or
agreed to pay the state agency the amount actuarially determined to
equal the cost for any employee dental benefits which were vested at
the same time that the function and the related personnel were
assumed by the state.  For noncontracting local public agencies, the
state department shall certify the completed years of local agency
service to be credited to the employee to the Public Employees'
Retirement System at the time of separation for retirement.
   (g) Whenever the state contracts to assume a local public agency
function, completed years of service rendered by the personnel for
compensation as employees or appointed or elected officers of the
local public agency shall be credited as state
                     service only upon a finding by the Department of
Finance that the contract contains a benefit factor sufficient to
reimburse the state for the amount necessary to fully compensate the
state for postretirement dental benefit costs for those personnel.
   (h) This section shall not apply to employees of the California
State University or the Legislature.
  SEC. 19.  Section 22957.5 of the Government Code is repealed.
  SEC. 20.  Section 10295 of the Public Contract Code is amended to
read:
   10295.  All contracts entered into by any state agency for (a) the
hiring or purchase of equipment, supplies, materials, or elementary
school textbooks, (b) services, whether or not the services involve
the furnishing or use of equipment, materials or supplies or are
performed by an independent contractor, (c) the construction,
alteration, improvement, repair or maintenance of property, real or
personal, or (d) the performance of work or services by the state
agency for or in cooperation with any person, or public body, are
void unless and until approved by the department.  Every such
contract shall be transmitted with all papers, estimates, and
recommendations concerning it to the department and, if approved by
the department, shall be effective from the date of the approval.
This section applies to any state agency that by general or specific
statute is expressly or impliedly authorized to enter into
transactions referred to in this section.  This section does not
apply to any transaction entered into by the Trustees of the
California State University or by a department under the State
Contract Act or the California State University Contract Law, any
contract of a type specifically mentioned and authorized to be
entered into by the Department of Transportation under Section 14035
or 14035.5 of the Government Code, Sections 99316 to 99319,
inclusive, of the Public Utilities Code, or the Streets and Highways
Code, any contract entered into by the Department of Transportation
that is not funded by money derived by state tax sources but, rather,
is funded by money derived from federal or local tax sources, any
contract entered into by the Department of Personnel Administration
for state employees in state bargaining units that have agreed to
this section in a memorandum of understanding for employee benefits,
occupational health and safety, training services, or combination
thereof any contract let by the Legislature, or any contract entered
into under the authority of Chapter 4 (commencing with Section 11770)
of Part 3 of Division 2 of the Insurance Code.
  SEC. 21.  Section 10344.1 of the Public Contract Code is amended to
read:
   10344.1.  The Department of Personnel Administration, with respect
to contracts entered into by the department for state employees for
employee benefits, occupational health and safety, training services,
or any combination thereof, shall provide all qualified bidders with
a fair opportunity to enter the bidding process, therefore
stimulating competition in a manner conducive to sound fiscal
practices.  The Department of Personnel Administration shall make
available to any member of the public its guidelines for awarding
these contracts, and to the extent feasible, implement the objectives
set forth in Section 10351.
  SEC. 22.  The provisions of the following memoranda of
understanding prepared pursuant to Section 3517.5 of the Government
Code and entered into by the state employer and the following
employee organizations in 1999, which require the expenditure of
funds, are hereby approved for the purposes of Section 3517.6 of the
Government Code:
   (a) Unit - 2 - Association of California State Attorneys and
Administrative Law Judges.
   (b) Unit - 9 - Professional Engineers in California Government.
   (c) Unit - 10 - California Association of Professional Scientists.

   (d) Unit - 12 - International Union of Operating Engineers.
   (e) Unit - 13 - International Union of Operating Engineers.
  SEC. 23.  Notwithstanding Section 3517.6 of the Government Code,
the provisions of any memorandum of understanding that require the
expenditure of funds shall become effective even if the provisions of
the memorandum of understanding are approved by the Legislature in
legislation other than the annual Budget Act.
  SEC. 24.  Any provision in a memorandum of understanding approved
by any section of this act that requires the expenditure of funds
shall not take effect unless funds for these provisions are
appropriated by the Legislature.  If funds for these provisions are
not appropriated by the Legislature, all or any part of the
memorandum of understanding may be declared null and void by any
affected employee organization.
  SEC. 25.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order for the provisions of this act to be applicable as soon
as possible in the 1999-2000 fiscal year and thereby facilitate the
orderly administration of state government at the earliest possible
time, it is necessary for this act to take effect immediately.
